Wednesday, March 22, 2006


Debt Solutions sued again (208 629 5001) Prerecorded message:" Hi, this is Karen McCarthy with Debt Solutions."

'Debt Elimination Program' Fails to Deliver Guaranteed Lower Interest Rates

Telemarketers Also Violate Do Not Call Rule

The Federal Trade Commission and the Washington State Attorney General have asked a federal judge to order Debt Solutions Inc. and three other telemarketers in Washington and Florida to stop charging consumers hundreds of dollars for a “debt elimination program” that offers a false promise of substantially reduced interest rates and thousands of dollars in savings. The agencies jointly filed the action in U. S. District Court in Seattle, seeking an injunction against them and refund of monies paid for violations of Section 5(a) of the FTC Act, the FTC’s Telemarketing Sales Rule (TSR), and Washington’s Consumer Protection Act.
“The defendants’ so-called ‘debt elimination program’ was not the answer for consumers who found themselves in financial hot water,” said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection. “There are a variety of legitimate options to reduce debt, including more realistic budgeting, credit counseling from reputable organizations, debt consolidation programs, and, if need be, filing for bankruptcy. In every case, though, people should be wary of any business that claims it can negotiate substantially lower interest rates on credit cards and loans.”
According to the FTC and the State of Washington’s complaint, since at least 2002, Debt Solutions Inc., DSI Financial Inc., DSI Direct Inc., Pacific Consolidation Services Inc., Kenneth Schwartz, Jennifer Ruth Whalen, David C. Schwartz, and Greg Moses have telemarketed and sold what they call a debt elimination program by making unsolicited phone calls to consumers nationwide, and by marketing the program on several Internet Web sites, including and The complaint alleges that the defendants falsely represented to consumers that they would be assigned a financial consultant whose special relationships with creditors will enable the consultant to negotiate substantially lower interest rates, saving consumers thousands of dollars, reducing their monthly payments, and paying off their debts three to five times faster–all without higher monthly payments. In fact,according to the complaint, consumers who purchase the program typically do not have theirinterest rates lowered at all, and, if they do, the reductions are rarely more than one percentage point.
Consumers are promised a full refund if they do not save at least $2,500, but few consumers have received the guaranteed refund, according to the agencies’ complaint. Before buying the program for $399 to $629, the complaint alleges, consumers are not told that the promised savings may take decades to achieve, or that most of the savings will result from simply paying more money every month, not from reduced interest rates. The defendants also claim the program is endorsed by the Financial Standards Council in Canada and the Registered Financial Planners Institute of North America, but both claims are false, according to the complaint.
The FTC and the State of Washington’s complaint alleges that the defendants violated Section 5(a) of the FTC Act by falsely representing that purchasers will (1) save thousands of dollars in a short time; (2) have credit card and loan interest rates reduced substantially; (3) pay off their debt much faster without higher monthly payments; and (4) reduce their monthly credit card and loan payments. The complaint also alleges that they falsely represent that they have special relationships with credit card companies and lenders, and that their program is endorsed by the two organizations mentioned above. It also alleges that they misrepresented their money-back guarantee.
The complaint further alleges that the defendants violated the TSR and Washington state law by misrepresenting projected savings, failing to disclose the limits of their money-back guarantee, calling phone numbers listed on the Do Not Call Registry, failing to pay the required annual fee for access to DNC-listed numbers, and calling persons who had asked them to stop calling. The defendants also violated Washington state law by engaging in unfair or deceptive acts or practices and unfair methods of competition.

Debt Solutions (208 629 5001)still calling. Latest illegal message 1/30/07. Can anybody stop these people?
Debt Solutions (317 436 1150) VOIP DID ACCOUNTS. Illegal telemarketer still calling. Report all calls to your Attorney General.
I recieved 3 calls from this rip-off company this week. It also lets you know how worthless the Federal Trade Commission and the Washington State Attorney General is in regard to really doing anything about this. They are all worthless!
Posted at Kansas City infoZine News

Telemarketer That Defrauded Missourians Through Robocalls Has Assets Frozen

Attorney General Jay Nixon on Thursday (Nov. 29 2007) obtained a court order freezing the assets of a San Francisco company that gave false information to Missourians in telemarketing calls selling credit card consolidation and credit counseling services. The order, signed by St. Louis City Circuit Judge John Garvey, was issued against Telelytics and its officer Scott Kaplan. Kaplan and Scott Olson, CEO of defendant Generations Direct, have been ordered to travel to St. Louis to give depositions regarding the false information.

Nixon previously obtained temporary restraining orders against Telelytics, along with Generations Direct and Vitelity Communications and their CEOs, in April and October. The April order was entered as a result of the defendants making telemarketing calls to Missourians on the No Call list, and the October order was due to allegations that the defendants were making fraudulent statements in those calls while attempting to make a sale.

Telelytics was making one million robocalls a week across the United States at one time, according to a deposition statement from Kaplan. According to Nixon, the defendants used automated calls to contact Missouri consumers and then told those consumers, among other things, that they had been approved to consolidate their credit cards down to as low as 1.5 percent interest; that the consumers had already been approved by a "certified non-profit agency"; that Debt Solutions was "dedicated to helping folks regain their financial freedom"; and that the consumer would be transferred to a "certified credit counselor right away." Consumers were told to call a specific person, "Karyn McCarthy," at an 800 number to receive more information.

Nixon says none of those statements made in the robocalls were true. Consumers who called back were eventually directed to representatives of a separate company who would try to sell debt consolidation and other services to them. "It was important to go to court while our lawsuit against these defendants is still pending and get an order freezing their assets to make sure Missouri consumers are protected," Nixon said.

According to Thursday's order, all assets and funds owned by the defendant Telelytics are frozen. Additionally, defendants Kaplan and Olson are ordered to travel to St. Louis at their own expense so that their depositions can be retaken in the case, and they also are ordered to reimburse the state for travel expenses incurred in taking the defendants' previous depositions. The depositions of Kaplan and Olson are to serve as a sworn accounting of the company's assets, including who invested in Telelytics, in what amount, the location of those funds and the uses to which the funds were put.
(517 933 2095) STUPPS INC
Illegal pre-recorded message to lower credit card rates. Pressed 1 to get info. from telemarketer. She said the name of her company was Card Services Financial, Station Island, New York. We argued, I said she was a criminal etc. and she said I was wasting her time. Please report all calls to the FTC and your Attorney General.
(231 224 2058) RETIRED
Illegal pre-recorded message to lower credit card rates from Card Services. Pressed 1 to get info. from telemarketer,long wait.Operator asked if I wanted to lower my interest rates. He asked who he was talking to and when I asked who he was calling he hung up. Please report all calls to the FTC and your Attorney General.
If you are really having troubles with your debts then you can apply to a company that can help you to save your credit score and history.
Based on the area code and prefix, phone number 231-224-2058 location could be Fremont, Michigan. Check in here:
Check phone number 208-629-5001 details using phone lookup services!
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